Click on the icon to read the news clip, then answer the following questions. The graph shows the market for milk in Venezuela when a price control is in effect. Draw a shape that represents: ) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the deadweight loss. Label it DWL Also draw a shape that show the resources lost from time spend in line. Label it Loss. Moving from a milk market with no price controls to a milk with price controls producer surplus. A. increases; decreases B. decreases; decreases OC. decreases; increases D. increases; increases in the market for cheese. OA. the price is below the market equilibrium OB. total surplus is maximized and no deadweight loss arises C. a deadweight loss arises OD. consumer surplus decreases and producer surplus decreases consumer surplus and 60- 50- 40- 30- 20+ 10- Price (bolivars per gallon) 40 $ Price control D Q Q 300 100 200 300 400 500 600 700 Quantity (gallons of milk) >>> Draw only the objects specified in the question.

Click on the icon to read the news clip, then answer the following questions. The graph shows the market for milk in Venezuela when a price control is in effect. Draw a shape that represents: ) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the deadweight loss. Label it DWL Also draw a shape that show the resources lost from time spend in line. Label it Loss. Moving from a milk market with no price controls to a milk with price controls producer surplus. A. increases; decreases B. decreases; decreases OC. decreases; increases D. increases; increases in the market for cheese. OA. the price is below the market equilibrium OB. total surplus is maximized and no deadweight loss arises C. a deadweight loss arises OD. consumer surplus decreases and producer surplus decreases consumer surplus and 60- 50- 40- 30- 20+ 10- Price (bolivars per gallon) 40 $ Price control D Q Q 300 100 200 300 400 500 600 700 Quantity (gallons of milk) >>> Draw only the objects specified in the question.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 24P

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Similar questions

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